Declining turnover across all segments has resulted in sharply lower profits for the Distilleries Company of Sri Lanka (DCSL), despite lower cost of sales and administrative expenses.
According to the company’s financial statements, the consolidated net profit for the three months ended 30 June 2009 fell by 54.88% to Rs.565 million from a net profit of Rs.1.2 billion for the corresponding period last year. Turnover also decreased by 39.51% to Rs.9.7 billion from Rs.16 billion in 2008. The company reverted to the state, on a court decision, after it was privatised.
Cost of sales decreased by 64.60% to Rs.2.5 billion while administrative expenses decreased by 50% to Rs.604 million for the period under review. Distribution costs increased by 10% to Rs.688 million. Income tax expenses also went up by 31% to Rs.369 mllion.
According to the segmental information for the three months ended 30 June 2009, the turnover from beverages decreased to Rs.7.52 billion from Rs.7.59 billion last year.
The plantation management sector went down to Rs.521 million from Rs.1 billion while the turnover from the telecommunications sector declined to Rs.1.4 billion from Rs.2 billion.
The diversified segment showed the steepest decline, down to Rs.235 million from Rs.5.1 billion.